Recent news reports say that the Federal Reserve plans to accept equities at the Discount Window. This seems absolutely nuts to me as equities can be sold on the open market exchanges where there is plenty of liquidity. The only reason I can see for the Fed to do this is to allow IBs, banks, and others who have access to the Fed Discount Window to get more cash (in the form of a loan) for their securities than they could on the open market. The Fed must fear that many Fed Discount Window beneficiaries are getting ready to sell a ton of equities on the open market which could crash the stock market.
It’s also possible that some ailing Fed Discount Window Teetsucker is holding a brickton of MER stock, so the Fed conspired with BofA to have BofA “bid” $29 for MER. Now, instead of the ailing teetsucker dumping all thier MER on the open market and driving the price down from $17, the Teetsucker can get $29/share straight from the Fed Discount Window. Man. I wish I could get that kind of deal.
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